Lotus Technology, the tech company that emerged from British sports car maker Lotus and is now owned by Chinese automaker Geely, announced on Wednesday that it has completed the fundraising that values the startup at about $4.5 billion, according to a report by Reuters.
Lotus Technology said it will use the financing proceeds to innovate products and build global distribution networks. Reuters first reported in 2021 that Lotus Technology was looking to raise between $400 million and $500 million by the end of this year, with a post-money valuation of $5 billion to $6 billion. The company later confirmed to Reuters today that it was the same fundraising round, but declined to disclose the amount raised or the investors involved.
Lotus Cars was founded in 1948 and was owned by Colin Chapman for many years. After his death and due to financial instability, the company was sold through its subsidiary Proton to General Motors, then Romano Artioli and DRB-HICOM.
In 2017, the automaker changed hands again after China’s Geely, which also owns Volvo, London Taxi Company and Lynk&Co, acquired a 51% stake in Lotus, while Malaysian automaker Etika bought the remaining 49%. Lotus plans to start production of its first electric SUV by the end of 2022, with deliveries beginning in early 2023.
Described by the automaker as a “global ‘smart technology’ subsidiary that extends the brand’s DNA and technology accumulated over the 73 years that Lotus has existed,” Lotus Technology’s role is to enable innovation in the fields Batteries and electrical power management to accelerate engines, electronic control systems, intelligent driving, intelligent manufacturing and more.
In August 2021, Lotus Technology opened its global headquarters with a groundbreaking ceremony in Wuhan, China. Lotus Technology’s new headquarters will be completed in 2024. The company added that the new Lotus factory, scheduled to open in 2021, will be used to manufacture Lotus electric vehicles for global markets.